Authors

  • Farrukh Salamov
    Samarkand Institute of Economics and Service.

DOI:

https://doi.org/10.71337/inlibrary.uz.jmsi.123887

Abstract

 the article is devoted to the process of investment in the theories of neoliberal economic schools.


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volume 4, issue 5, 2025

951

ASSESSMENT OF INVESTMENT EFFICIENCY BASED ON PERSONAL

PREFERENCES AND EXPECTATIONS IN THE NEOLIBERAL CONCEPT.

Salamov Farrukh Fattoevich

Acting Associate Professor of the Department of Economic Theory at the

Samarkand Institute of Economics and Service.

E-mail:

farrux_sies@mail.ru

Key words:

ease of obtaining credit , intertemporal coordination between investor and consumer

decisions , capital intensity.

Abstract:

the article is devoted to the process of investment in the theories of neoliberal

economic schools.

According to prospect theory, developed by D. Kahneman and A. Tversky in 1979, investors

regularly violate the provisions of the expected utility theory and the theory of rational

expectations. Within the framework of the theory of behavioral finance, the criterion for

decision-making is not the level of well-being, but the subjective assessment by the economic

entity of his loss or gain obtained as a result of investment activity

1

. Subjective assessments are

akin to a "narrow frame" through which the investor looks at the entire spectrum of existing risks

2

. The action of the narrow frame mechanism can be seen as an explanation for the phenomenon

of the return premium on capital, as well as the limited participation of households in stock

market activities. market

3

. For households, it is not only the quantitative assessment of the

expected investment return that is fundamentally important, but also the “moral-ethical anchors”,

that is, normative-value judgments that take the form of a narrative or justification. “That is why,

in the case of moral-ethical anchors, people compare a story that does not have any quantitative

measurements with the amount of profit they can make

4

.

The theory of behavioral finance assumes taking into account psychological factors that hinder

effective investment decision-making. It is proved that emotional involvement in the investment

process reduces profitability in the long term, which negatively affects the pricing mechanism of

the investment market, increasing its information asymmetry.

The proponents of behavioral and information economics theories, which include representatives

of post-Keynesianism , neoliberalism, and the new institutional school, study not so much the

investment mechanism, its forms, types, and stages, as they study the behavior of the subject in

1

Unlike M. Friedman and L. Savage , J. Akerlof , R. Shiller and D. Patinkin are confident that economic activity has

not only rational motivation, but is also largely determined by irrational incentive impulses, which is the main cause

of economic fluctuations and forced unemployment ( Akerlof J., Shiller R. Spiritus Animalis , Or, How Human

Psychology Drives the Economy and Why It Matters for Global Capitalism / Translated from English by D.

Priyatkina . – Moscow: United Press, 2011. Pp. 206-210; Patinkin, D. Money, Interest, and Prices. Combining the

Theory of Money and the Theory of Value / Translated from English by E.V. Manevich . – Moscow: Economica,

2004. Pp. 35-44).

2

Benartzi S., Thaler RH Myopic loss aversion and the equity premium puzzle // Quarterly Journal of economics.

1995. Vol. 110(1). - P. 73-92.

3

Dimmock SG, Kouwenberg R. Loss-Aversion and Household Portfolio Choice // Journal of empirical finance.2010.

Vol . 17(3). - P. 441-459.

4

Shiller R. J. Irrational Optimism. How Reckless Behavior Drives Markets / Translated from English by E. Kalugin. -

M.: OOO Alpina Publisher , 2013. - P. 235.


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volume 4, issue 5, 2025

952

the process of making an investment decision. All this suggests that in the conditions of the

information economy, there is no traditional division of macroeconomic subjects based on the

types of their economic activity. For example, modern firms can be both borrowers and creditors

at the same time, participate in the investment process, and save. In modern conditions,

macroeconomic agents try to extract income from the investment process by diversifying their

investment portfolio. The introduction of the latest technological advances, such as artificial

intelligence, facilitates the process of forming an optimal investment portfolio that provides for

investments in various objects, thereby ensuring a balance of risk and profitability;

Conclusion:

within the framework of the theory of information economics, scientists focus not

so much on studying investments as real capital investments, research into sources, stages of the

investment process, forms and types of investments, but rather on analyzing the investment

behavior of economic entities, their motivation, the mechanism for making investment decisions,

which blurs the boundaries of the traditional concept of macroeconomic entities by the type of

their economic activity.

Bibliographic list

1.

M.M.Mukhammedov . , N.A.Kamilova // Economic theory / textbook. Samarkand 2023

pp. 288-289.

2.

Becker G.S. Family // Economic Theory / Edited by J. Eatwell , M. Milgate , P. Newman .

– M.: INFRA-M, 2004.
3.

John J. Murphy Technical Analysis of Futures Markets: Theory and Practice. Moscow

2011. 610 p.
4. Ermilina D.A. Investments in the light of economic theory. [Text] / D.A. Ermilina //- Regional

problems of economic transformation. Makhachkala - 2013 - No. 1 - pp. 239-246

References

M.M.Mukhammedov . , N.A.Kamilova // Economic theory / textbook. Samarkand 2023 pp. 288-289.

Becker G.S. Family // Economic Theory / Edited by J. Eatwell , M. Milgate , P. Newman . – M.: INFRA-M, 2004.

John J. Murphy Technical Analysis of Futures Markets: Theory and Practice. Moscow 2011. 610 p.

Ermilina D.A. Investments in the light of economic theory. [Text] / D.A. Ermilina //- Regional problems of economic transformation. Makhachkala - 2013 - No. 1 - pp. 239-246

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